Britain’s second biggest energy supplier has promised to freeze prices for its
five million customers until at least January 2016.

SSE, the Scottish-based energy company, said that the move, which comes after
Labour’s pledge to freeze prices if it wins next year’s general election, is
the longest unconditional price promise ever offered by an energy supplier.

It sends a strong message to other Big Six suppliers , with experts saying
that British Gas, the biggest UK supplier, is under the most pressure.

The company said that the voluntary freeze would cut profits from supplying
households and businesses with energy by about

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What does the freeze mean?

SSE will freeze tariffs for existing customers on a standard variable electricity or gas deal until January 2016. About 90 per cent of its 5 million customers are on standard deals. Customers on fixed deals will not benefit.

Why has SSE done this?

Energy suppliers are under pressure to cut bills after Ed Miliband pledged to freeze prices for 20 months if Labour wins the general election.

What should consumers do?

Even after the price freeze, SSE customers on standard tariffs should move to the company’s fixed deals or, better still, those offered by smaller suppliers. SSE’s standard dual-fuel customers paying by cash or cheque are charged, on average, £1,266 per year, while those on direct debit pay £1,186. SSE has a one-year fixed tariff costing £1,115 and one fixed until March 2017 for £1,174